In the Pulitzer prize-winning novel House Made of Dawn by Native American author N. Scott Momaday, the dilemma Indians faced after World War II, as they moved from tradition to modernity, is projected into two spaces in the text: the Indian reservation and the modern city of Los Angeles. In contrast to the previous view of the protagonist’s return as criticizing urbanization and modernity, this article argues that the return reveals a third alternative for the modern Native American people beyond the binary opposition between the physical environment and the spiritual homeland. It opens up a real and imaginary urban Thirdspace in which the two can be merged.